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Tag: Ellah Lakes

  • Ellah Lakes’ major investor distributes shares to creditors, shareholders

    Ellah Lakes’ major investor distributes shares to creditors, shareholders

    CBO Capital Partners Limited (CBO), a major shareholder of Ellah Lakes Plc, has decided to transfer a portion of its equity stake to its shareholders and creditors in a move that will further dilute the ownership structure of Ellah Lakes.

    Chief Executive Officer, Ellah Lakes, Mr. Chuka Mordi yesterday said the transfer by CBO was aimed at twin objectives of strengthening CBO’s financial position and also freeing up more shares for retail investors’ participation in Ellah lakes.

    According to him, the transfer, which will be done through cross deal, was aimed at at offsetting CBO’s outstanding obligations to CBO shareholders, while simultaneously fulfilling Nigerian Exchange’s (NGX) requirements on the free floating of Ellah Lakes shares.

    “By undertaking this strategic move, CBO is demonstrating its’ commitment to financial responsibility and compliance with regulatory standards set forth by the NGX. The decision to transfer a portion of Ellah Lakes shares to its’ creditors not only helps CBO manage its’ obligations effectively, but also enhances the liquidity and free float of Ellah Lakes shares in the market.

    “This cross deal signifies a proactive approach by CBO to strengthen its’ financial position and support the stability and growth of Ellah Lakes Plc. We believe that this trade move will have a positive impact on all stakeholders involved and contribute to the overall success of Ellah Lakes Plc,” Mordi said.

    Read Also; Ellah Lakes eyes capital injection to boost operations

    Ellah Lakes had signed many agreements in recent period for major projects that are expected to form the backbone of the company’s business diversification drive.

    It had reached agreement to build a 600-tons sugar refinery in collaboration with Montserrado Investment Ltd. The sugar processing facility is expected to run on 100 per cent renewable power.

    Ellah Lakes had earlier reached agreement with Ondo State on the development of a palm oil and cassava farm, covering about 5,000 hectares. Both partners would jointly develop and manage the farm for the cultivation of oil palm and cassava in Ondo state.

    Ellah Lakes had in August 2020 entered into exclusive discussions to acquire the entire issued capital of an oil palm processing company with substantial assets in Delta State.

    Ellah Lakes was incorporated on July 2, 1980 and was listed on the Nigerian Exchange (NGX) on January 14, 1993. Originally a fish-farming company, Ellah Lakes had recently embarked on a comprehensive restructuring and diversification of its businesses. In 2019, it acquired Telluria in order to diversify its product offerings in the agribusiness sector.

    Ellah Lakes acquired 100 per cent equity stake in Telluria with effect from May 7, 2019. Having complied with all the necessary regulatory requirements, the acquisition was approved by the NSE and Securities and Exchange Commission (SEC).

  • Ellah Lakes eyes capital injection to boost operations

    Ellah Lakes eyes capital injection to boost operations

    Ellah Lakes Plc plans to conclude a special capital raising exercise aimed at injecting new equity funds into the company by the end of this month.

    Chief Executive Officer, Ellah Lakes Plc, Mr. Chuka Mordi said the special equity placement has commended and would be completed by the end of this month.

    The special equity placement comes on the heels of the success of the company’s recent rights issue, during which existing shareholders recapitalized the company by N250 million.

    Mordi noted that despite the headwinds faced in the past few years, the company has achieved significant milestones which has put it back on track towards generating operating cashflow and profitability in the near term.

    He said the rights issue significantly deleveraged the company through a debt-for-equity conversion while the special equity placement is expected to further strengthen the balance sheet.

    “On the side of operations, an additional 1,100 hectares has been cleared at the plantation in Edo State, and planting will commence this season as we are in the process of ordering seedlings for this exercise.

    “Similarly, the Soybean planting programme will also commence this planting season. We also expect to conclude the installation of our CPO mill which, following the resolution of our community issues, should be fully operational by the third quarter of 2024,” Mordi said.

    Read Also: Ellah Lakes’ N2.9b rights issue closes Wednesday

    He pointed the current macroeconomic environment has validated the decision to move the company in the direction of import substitution in the agribusiness space.

    He assured shareholders that the company would continue to grow its business with a view to improving returns to shareholders.

    Ellah Lakes had offered 1.0 billion ordinary shares of 50 kobo each to existing shareholders at N2.90 per share. The rights issue was pre-allotted on the basis of one new share for every two shares held as at the close of business on Friday, February 10, 2023.

    Ellah Lakes had signed many agreements in recent period for major projects that are expected to form the backbone of the company’s business diversification drive.

    It had reached agreement to build a 600-tons sugar refinery in collaboration with Montserrado Investment Ltd. The sugar processing facility is expected to run on 100 per cent renewable power.

    Ellah Lakes had earlier reached agreement with Ondo State on the development of a palm oil and cassava farm, covering about 5,000 hectares. Both partners would jointly develop and manage the farm for the cultivation of oil palm and cassava in Ondo state.

  • Ellah Lakes’ N2.9b rights issue closes Wednesday

    Ellah Lakes’ N2.9b rights issue closes Wednesday

    Application list for the ongoing N2.9 billion rights issue by Ellah Lakes Plc is scheduled to close on Wednesday.

    Ellah Lakes is offering 1.0 billion ordinary shares of 50 kobo each to existing shareholders at N2.90 per share. The rights issue was pre-allotted on the basis of one new share for every two shares held as at the close of business on Friday, February 10, 2023.

    The agricultural company will use the net proceeds of the rights issue to strengthen its balance sheet to support new business developments.

    Ellah Lakes has signed many agreements in recent period for major projects that are expected to form the backbone of the company’s business diversification drive.

    It had reached agreement to build a 600-tons sugar refinery in collaboration with Montserrado Investment Ltd. The sugar processing facility is expected to run on 100 per cent renewable power.

    Ellah Lakes had earlier reached agreement with Ondo State government on the development of a palm oil and cassava farm, covering about 5,000 hectares. Both partners would jointly develop and manage the farm for the cultivation of oil palm and cassava in Ondo State.

    Ellah Lakes had in August 2020 entered into exclusive discussions to acquire the entire issued capital of an oil palm processing company with substantial assets in Delta State.

    Read Also: Ellah Lakes to raise N2.9b from shareholders

    Chief Executive Officer, Ellah Lakes Plc, Chuka Mordi said the refinery agreement was a significant landmark for the company in fulfilling its strategic objective of diversifying its portfolio and production base.

    “We are very pleased at this collaboration and look forward to a mutually beneficial, valuable and fruitful venture,” Mordi said.

    He noted that the new sugar plant aligns with the National Sugar Master Plan (NSMP) being championed by the National Sugar Development Council (NSDC), which is geared towards accelerating the development and growth of the local sugar industry to achieve national self-sufficiency.

    Ellah Lakes was incorporated on July 2, 1980 and was listed on the Nigerian Exchange (NGX) on January 14, 1993. Originally a fish-farming company, Ellah Lakes had recently embarked on a comprehensive restructuring and diversification of its businesses. In 2019, it acquired Telluria in order to diversify its product offerings in the agribusiness sector.

    Ellah Lakes acquired 100 per cent equity stake in Telluria with effect from May 7, 2019. Having complied with all the necessary regulatory requirements, the acquisition was approved by the NSE and Securities and Exchange Commission (SEC).

    Mordi has said ongoing restructuring would make Ellah Lakes to attain profitability and further foster its vision of being the leading supplier of sustainable edible oil and starch to the consumer goods sector in Nigeria.

    He noted that prior to 2019, Ellah Lakes was an insolvent entity but Telluria Ltd completed a reverse acquisition of the company, recapitalising the balance sheet and repositioning the business for growth with a new board and management team.

    “Today, we are undergoing a restructuring exercise, which will return the business to profitability and reposition it as a leading agribusiness player across West Africa. From a corporate governance point of view, we hold ourselves to high standards of governance as expected by our shareholders and regulator, and as is befitting of our vision to become the leading supplier of sustainable edible oils and starch to the FMCG Industry in Nigeria, particularly, and West Africa, in general,” Mordi said